Watch Out For the In-Laws During Divorce

A landmark ruling in Germany has seen a shift in theHowever, now other gifts may be called into question.
way property and gifts are divided during a divorce. AIf parents want to avoid having to take this kind of
judge in Berlin has ordered a man to pay back a giftaction should their child separate form their partner,
of EUR29,000 (£25,000) which was given to thethen they will have to make it clear that the present is
couple to help them buy a house. Seeing as they hadintended for their child only.
given the deposit for a family home and there was noLawyers have linked this case with the rise in
longer a family, the in-laws argued that they should getpre-nuptial agreements where parental anxiety leads
the money back. It should be stated that the man wasto an agreement over gifts given to their married
still living in the home and the ex-wife had moved out.children. This has mainly been sparked out of the fact
This case is set to influence other such cases aroundthat many parents now have to help their adult children
the world as a precedent for gifts which are given tobuy a house. Parents are anxious that the money or
a couple by the parent's of one spouse.items which they have gifted to the couple will pass
The judge stated that the 'contractual basis' of giftsout of their child's hands should a separation occur, and
like this depended on whether it had been given sotherefore they stipulate that the gift or money must
that the in-laws' child could enjoy it as well as theirreturn to their child or themselves on the break-up of a
spouse. In the case of a mortgage deposit this ismarriage.
obvious as both parties will be living in the house.